Gold edged up towards last week's record peaks as players piled back into the metal amid ongoing worries about global inflation risk, with crude oil rising back towards the 100 usd mark.

Gold, seen as a safe haven asset and alternative play to the US dollar, often acts also as a hedge against oil-led inflation.

Analysts at Standard Bank said alongside stagflation concerns in the US and higher euro zone inflation, rising oil prices have aggravated global inflation risk.

'We see further upside for gold and platinum as crude prices strive to consolidate above 100 usd a barrel,' they said, adding that 'a steep near-term correction in oil prices is unlikely'.

At 9.57 am, gold was trading at 949.00 usd an ounce against 944.60 usd in late New York trade Friday. On Thursday, the precious metal hit a fresh record high of 953.75 usd an ounce.

The dollar was strengthening against the euro, but gold prices failed to move lower in response, with analysts pointing out the inverse relationship between gold and the dollar has weakened in recent days.

'We have observed a weakening in gold's responsiveness to currency shifts (usd/eur movements),' said analysts at Standard Bank.

They added: 'We believe that rising energy costs (and subsequent inflation risk) and expected interest rate cuts from the Fed have been significant drivers of recent upward momentum in the gold price'.

Attention will turn later today to US existing homes sales data for January, scheduled for release at 3.30 pm, for further clues on the outlook for the US economy, the dollar and gold.

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